Canadian low-fare airline, Jetsgo ceases trading, and strands passengers
Discount Canadian airline Jetsgo sought bankruptcy court protection and
abruptly canceled all its flights Friday, stranding an estimated 17,000
passengers, many of whom were heading out on spring break.
The privately held company issued the stunning announcement minutes into
Friday morning. It is asking Quebec Superior Court to grant it
protection from creditors.
Jetsgo advised customers to make alternative arrangements before heading
to the airport since there would be no Jetsgo staff or planes available.
Travelers who are already away were told their return tickets were no
good and to make other arrangements to get back home.
"Obviously this is one of the worst times it could have happened because
of the March break," said federal Transportation Minister Jean Lapierre,
who urged other airlines and the national train system to try to add
more capacity to handled the stranded passengers.
The shutdown comes at the start of March break for many school systems
across Canada, when hordes of families flock to Florida, Mexico and
other hot spots served by the airline in one of the busiest travel times
of the year.
"We deeply regret that this had to happen. The decision to cease
operations was only taken after difficult deliberation," Jetsgo
president Michel Leblanc said in a statement.
Jetsgo said that difficult market conditions and competitive pressures
led the company to discontinue operations and ground all of its planes.
"In the meantime, we encourage our passengers to contact their travel
agent or an alternative airline," Leblanc said. But many Jetsgo
passengers can't afford alternatives.
A spokesman for archrival WestJet said the carrier would do its best to
take care of Jetsgo passengers and stranded crew members.
Air Canada spokeswoman Laura Cooke said the timing of Jetsgo's failure
would make it tough to find seats for extra passengers.
"Obviously, the problem at this time of year is that the aircraft are
already flying rather full because ... of March break," Cooke said.
Air Canada cannot honor Jetsgo tickets but said it would try to make
more aircraft and seats available for Jetsgo passengers to purchase.
Jetsgo had at least 18 flights scheduled to leave Toronto's Pearson's
Airport -- Canada's transport hub -- on Friday morning, including
domestic, U.S. and Mexican destinations.
The company said in its statement that consumers who have paid for
Jetsgo tickets should communicate with the Canadian Transportation
Agency or provincial consumer affairs ministries.
© Copyright Associated Press
11th March 2005
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